Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ shares drop, led by Warehouse

MARKET CLOSE: NZ shares drop, paced by Warehouse, Hallenstein, Kathmandu

By Suze Metherell

Jan. 23 (BusinessDesk) - New Zealand shares fell as the market joined a region-wide decline, and was paced by retailers after the Warehouse Group joining Hallenstein Glassons in issuing a profit warning.

The NZX 50 Index fell 39.263 points, or about 0.8 percent to 4911.076. Within the Index 35 stocks fell, seven rose and eight were unchanged. Turnover was $101.7 million.

Across the Asian markets there was a downturn after Chinese data showed manufacturing was shrinking. Australia’s S&P/ASX 200 Index was down 1.2 percent in afternoon trading, while Hong Kong’s Heng Seng Index slipped 1.4 percent and Japan’s Nikkei 225 Index was down about 0.4 percent.

“The negative data out of China flowed on particularly through Australia,” said James Smalley, a director at Hamilton Hindin Greene. “We just seem to be following those trends at the moment.”

Budget retailer Warehouse Group led decliners after it warned its first half profits could fall as much as 13 percent. New Zealand’s largest listed retailer slid 4.5 percent to $3.54, its lowest price this year.

Among other retail stocks to fall, outdoor equipment chain Kathmandu Holdings dropped 4.4 percent to $3.35 and Hallenstein Glasson, which was punished last week after it issued a profit warning, fell 2.9 percent to $3.35.

Smalley said the decline among retailers was on light trading volumes, and that “most people want to give the companies the benefit of the doubt.”

Listed property entities declined as the talk of an interest rate hike “sooner rather than later,” diminishing the appeal of property stocks that typically return a steady cash dividend, Smalley said.

Goodman Property Trust fell 1 percent to 97 cents. Kiwi Income Property Trust dropped 0.9 percent to $1.10. DNZ Property Fund fell 0.3 percent to $1.53, and Argosy Property was unchanged at 93 cents.

SkyCity Entertainment Group slipped 1.8 percent to $3.82. Auckland International Airport slid 1.2 percent to $3.62. New Zealand’s biggest listed company Fletcher Building fell 0.3 percent to $9.13. Telecom was down 0.2 percent to $2.39.

Smalley said some of the heat came out of the tech stocks as investors took the opportunity to take profits.

Xero, whose share price has gained 480 percent in the past 12 months, declined 1.4 percent to $42.59. Security software company Wynyard slipped 7.6 percent to $2.93. NZAX-listed GeoOp, which today announced it was on track to hit sales targets of its task management app, tumbled 11 percent to $2.45.

“It could be the old absolute of investors, buy the rumour, sell the fact,” Smalley said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news